By Chris Wack
The Federal Trade Commission said 7-Eleven Inc. and Marathon Petroleum Corp. had agreed to divest hundreds of stores used to sell gasoline and diesel fuel in 293 local markets in 20 states.
The FTC said on Friday that the move settled charges that 7-Eleven’s acquisition of Marathon’s Speedway subsidiary violated federal antitrust laws.
7-Eleven owns, operates and franchises approximately 9,000 convenience stores in the United States, making it the largest convenience store chain in the United States. Almost half of 7-Eleven stores also sell fuel. 7-Eleven is a subsidiary of Seven & i Holdings Co., Ltd., based in Tokyo.
Marathon operates a vertically integrated refining, marketing, retail and transportation system for petroleum and petroleum products. Before the shutdown, Marathon controlled Speedway, which operates nearly 4,000 fuel outlets in the United States.
According to the complaint, the retail gasoline and diesel fuel markets are highly localized and consumers have no economical or practical alternatives to retailing gasoline or diesel fuel. The complaint alleged that the acquisition would hurt retail competition for fuel in 293 local markets across the United States
The complaint alleged that without recourse, the acquisition reduced the number of independent competitors to three or less in each of the 293 markets.
Under the proposed consent order, 7-Eleven and Marathon are required to transfer 124 fuel retail outlets to Anabi Oil, including 123 Speedway outlets and one 7-Eleven outlet. They are also required to transfer 106 fuel retail outlets to Cross America Partners, comprising 105 Speedway outlets and one 7-Eleven outlet, and they are required to transfer 63 Speedway fuel retail outlets to Jacksons Food. Blinds.
The proposed ordinance prohibits 7-Eleven from applying non-compete provisions to any franchisee or employee working or doing business with the transferred assets.
Marathon could not immediately be reached for comment.
Write to Chris Wack at [email protected]